Haredi Rabbi And Son Allegedly Ran $5 Million Ponzi Scheme
Shmarya Rosenberg • FailedMessiah.com
A haredi rabbi and his son allegedly stole at least $5 million from investors in a Ponzi scheme according to a class action lawsuit in Federal Court.
Zap Cellular Inc., the lead plaintiff in the suit, claims it gave more than $2 million to Rabbi David Cynnamon, his son Aaron Cynnamon, and the rabbi's company, DC Realty based on promises of a 10% to 17% return plus principal, Courthouse News reported.
"The plaintiff's money was in fact never used to invest in real estate. Instead the defendants deposited the money into private bank accounts, which they then used for their own personal gain,” the lawsuit alleges.
Rabbi David Cynnamon taught (and may still teach) for the Yeshiva of Brooklyn.